• Exports from east coast fall amid AP’s regulatory crackdown
  
• West coast attracts exporters due to operational efficiency
  

While India continues to dominate the global rice export market, a significant shift in trade patterns is underway, creating a stark contrast between the country’s two coastlines.

Exporters are increasingly redirecting their cargo to efficient west coast ports such as Kandla (+33% growth y-o-y in January-August 2025) and the Jawaharlal Nehru Port Trust (+31%), leading to a sharp decline in volumes from the traditional eastern hub of Visakhapatnam (-12%) and muted growth in Kakinada (+5%).

This divergence is largely a result of state-level policies and logistical hurdles that have made port operations on the eastern coast unviable for many traders.

Strict crackdown impacts Andhra Pradesh’s rice exports

The decline in volumes on the eastern coast is primarily due to a crackdown by the Andhra Pradesh government aimed at stalling the illegal export of subsidised rice intended for the Public Distribution System (PDS).

To combat this, the state has kept a careful watch and set up check-posts near ports, conducting strict inspections on rice-carrying trucks. This has resulted in what exporters describe as “harassment at check-posts” and a web of bureaucratic red tape, including the mandatory requirement for a “No Objection Certificate” (NOC) from the Civil Supplies Department.

The process has caused significant and costly delays, with trucks often waiting for days to clear their cargo. The local economy has been severely impacted, with reports of job losses for port workers, lorry drivers, and other related businesses.

West coast emerges as exporters’ choice

Conversely, west coast ports have emerged as the favoured alternative, providing a much-needed haven of efficiency and reliability. Ports such as Kandla in Gujarat, which has already established itself as a top handler of rice, are experiencing a surge in volume.

Exporters are choosing to transport their goods over a longer land route to these ports, as the smooth and predictable process outweighs the extra travel time and cost. The absence of the kind of state-level restrictions seen in Andhra Pradesh allows for a smoother flow of goods, providing a crucial competitive advantage.

Strategic challenge for India’s export future

This divergence in trends between the two coasts highlights a growing challenge for India’s export strategy.

While the government’s efforts to prevent the smuggling of PDS rice are legitimate, the implementation at the port level has also hindered operations on a vital export channel and pushed business to other regions.

As a result, the west coast is solidifying its position not just as a hub for containerised cargo, but also as the primary gateway for India’s bulk rice shipments. This has left eastern coast ports to grapple with a future of diminished trade and economic uncertainty.

Published Date: September 25, 2025